Stocks gain 82 points in seesaw session Weak wage outlook lifts Dow industrials

Nasdaq also strong

February 08, 1997|By BLOOMBERG NEWS

NEW YORK -- U.S. stocks surged in a seesaw session yesterday as a government report showing unexpectedly weak wage growth buoyed optimism for lower borrowing costs and rising profits.

The Dow Jones industrial average rose 82.74 points to 6,855.80, led by American Express Co. and International Business

Machines Corp. The Standard & Poor's 500 index rose 9.41 to 789.56, beating Tuesday's record by three-tenths of a point.

Earlier, the Dow industrials had been up 95 points after the government's monthly wage and unemployment report, then lost the entire gain and 10 points more after Treasury Secretary Robert Rubin raised concern that a declining dollar would decrease the allure of U.S. assets for foreign investors.

The recovery, triggered by the Labor Department's hourly wage report, brought the Dow to less than 1 percent above where it started the week, a sign that the 6-year-old bull market may be losing strength, some investors said.

The Nasdaq composite index rose 11.31 yesterday to 1,357.71, helped by recoveries by Intel Corp. and Microsoft Corp. after two days of losses.

The Russell 2,000 index rose 1.27 to 366.75; the Wilshire 5,000 index rose 84.56 to 7,582.92; the American Stock Exchange composite index climbed 1.58 to 586.61; and the S&P mid-

cap index added 1.25 to 264.02.

Advancers outnumbered decliners 1,643 to 944, with about 541 million shares changing hands on the New York Stock Exchange.

The Morgan Stanley high tech index rose 7.64, or 1.9 percent to 398.09, after having fallen 4.4 percent over the first four days of the week as concern spread that the market-leading makers of computer software, chips and connectors wouldn't duplicate 1996 growth.

Intel climbed $3.25 to $156.375 yesterday, and Microsoft gained $3.25 to $100.375, recovering part of the week's losses.

Xilinx Inc. jumped $3.125 to $46.75; Seagate Technology Inc. rose $4.375 to $50.50; and Sun Microsystems Inc. rose $1.625 to $34.

America Online Inc. fell $2.25 to $35.875 after reporting a wider-than-expected second-quarter loss.

3Com Corp. dropped $1.50 to $50.75 after Cowen & Co. lowered the maker of computer networking equipment to "buy" from "strong buy."

Cisco Systems Inc., which sells 80 percent of all network routers, fell 75 cents to $63.125, bringing its loss since Jan. 21 to 16 percent.

NationsBank Corp. rose $2.375 to an all-time high of $113.625. First Union Corp. gained $1.625 to $87, also a record.

Jayhawk Acceptance Corp. shares lost more than half their value, falling 1.$75 to $2.25 after the auto lender said it planned to file for bankruptcy.

Oil companies, some of which more than doubled last year, led declining shares as lower crude prices threatened profits. Crude oil, which has averaged about $24 a barrel this year, fell 87 cents to $22.23 a barrel. Texaco Inc. fell $1.875 to $102; Exxon Corp. lost 87.5 cents to $101; and Mobil Corp. slid 25 cents to $129.25.

The yield on the benchmark 30-year Treasury bond fell to 6.66 percent, then finished at 6.70, 5 basis points below Thursday's close.

Pub Date: 2/08/97

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